Trade liberalization generally occurs

Question

Quizplus · Accepted Answer

Trade liberalization usually occurs through trade bargaining whereby governments exchange market access commitments. This implies that countries negotiate and make agreements to reduce trade barriers and increase market access for their respective goods and services. Unilateral liberalization (option A) is less common because governments are often concerned about the impact on domestic industries, employment, and overall economic growth. Option B is also incorrect because trade liberalization generally seeks to promote competition and efficiency by exposing industries to international competition. Option C is incorrect because protecting less competitive industries goes against the objectives of trade liberalization. Finally, trade bargaining with other governments (option E) is crucial for countries seeking to expand their access to foreign markets and to promote international trade.

Trade Liberalization Generally Occurs